Ireland's cost of borrowing continued to climb on international markets today, though it fell back slightly from earlier highs in late trading.
The interest rate being demanded by investors to lend 10-year money to Ireland was 6.51%, having hit 6.55% earlier in the day.
This is more than four percentage points more than the equivalent German rate, meaning the spread, or gap, between the two is close to its highest levels since the euro was created.
Referring to speculation about Brian Cowen's position as leader of Fianna Fáil, the Minister for Finance Brian Lenihan said money lent to Ireland on international markets was borrowed over a number of years and that lenders took a long view. He said they were 'not influenced by minor political disputes'.
The Minister, who joined the Taoiseach for a joint press briefing this evening, said important decisions needed to be taken, and these would be taken in the coming weeks and months.
Earlier, Fine Gael finance spokesman Michael Noonan has said Ireland's bond market crisis is being fuelled by political instability and the growing lack of confidence in the Government's economic plan.
Mr Noonan said a general election was urgently needed to provide political and financial certainty.
The National Treasury Management Agency is due to auction up to €1.5 billion of bonds tomorrow.
Rehn expresses confidence in Ireland
The Economic and Monetary Affairs Commissioner, Olli Rehn, said today he was confident that Ireland would deal with the current problems that have caused renewed tensions in government debt markets.
'I have full confidence on Ireland and its capacity to act with determination to complete the financial repair and the necessary restructuring of the banking and financial sector,' Commissioner Rehn said at an event celebrating Estonia's impending entry to the euro zone.
He also said the Commission proposal for new budget rules, which will be published on September 29, would make the application of sanctions on budget offenders much more effective.
But he added that removing voting rights would require a change in European laws.
